Those Continue to Expand: Golden Land Berhad
The benchmark June 2018 contracts of crude palm oil (CPO) retreated RM23 to RM2418 per ton Friday (Mar 16). That means plantation companies have to bear with low price environment for most part of the first half. Still, plantation companies continue to bet on future growth. Malaysian company Golden Land Berhad, for example, decided to proceed with its plantation expansion program in Indonesia.
Food Security (7): Sugar
The government has pledged to provide two important supports for PT Muria Sumba Manis (MSM), member of Djarum Group, which develops integrated sugar plantation in Sumba Timur regency, East Nusa Tenggara province. State port management company Pelindo III plans to spend over US$20 million for the development of Waingapu port, which later on can be used by MSM.
Targeting Newcrest’s Gosowong Gold Mine (2)
Shares of Newcrest Mining Ltd opened lower by 1% on ASX this morning due to broad market sentiment. In Indonesia, the company’s Gosowong gold mine in Halmahera, North Maluku province, is under pressure, which might affect the Company’s gold production target. State miner Aneka Tambang is partner shareholder in the gold mine.
Coal Journal
Through a Domestic Market Obligation (DMO) policy, the Indonesian government forces local coal miners to supply part of their coal production to the domestic market, specifically to coal-fired power plants as there is a real need for an increase in the nation’s electricity supply.
Food Security (6): Salt, Walk the Talk!
Salt is not only important for food and pharmaceuticals. It is main raw material for chlor alkaly plant (CAP) in the production chain of polyvinyl chloride (PVC) resin and plastics. Salt is also supporting material in the production of salted fish, leather, feed, textile, oil and gas drilling, soap and detergent.
Those Continue to Expand: Premier Oil
Some said Indonesia is not an attractive place for oil and gas investments because of regulatory framework. Premier Oil Pcl, a UK-based oil and gas company, however, decided to continue investing in the country, seen as low-cost production site.
In GOLD They Trust
Gold retreated to US$1315 per ounce Monday (Mar 12), but the commodity has gained significantly since early 2016. It is still way below its peak in late 2011 (closer to US$1,800/Oz), but looks like that Indonesia will have more gold miners in the coming years. Other than Bakrie Group’s gold project in Sulawesi, we have at least two new gold producers in the coming years.
Strong January Data for United Tractors
Shares of United Tractors (UNTR) advanced to Rp36,450 Monday (Mar 12), but still 10% below its recent peak. The Company started 2018 with strong performance, especially in the sales of Komatsu construction machinery and overburden removal. Sales volume of own coal declined, but offset by higher average prices.
Those Continue to Expand in Plantation
The benchmark May 2018 contracts of crude palm oil (CPO) inched up RM4 only to RM2380 per ton Monday (Mar 12). That means the commodity will be significantly lower than average contracts in the first half of 2017. Natural rubber is also traded 35% below last year. Still, some plantation companies continue to bet on future of palm oil and natural rubber.
A More Aggressive Aneka Tambang (2)
State miner Aneka Tambang (ANTM) booked net profit of Rp136.5 billion last year, jumped by 111% from 2016 thanks to higher sales revenue and improved margins. EBITDA also soared 96% to Rp2.21 trillion, but investors shall wait longer to see bigger profitability in the company.